Romanian MPC remains cautious, Czech MPC stays dovish

The Romanian MPC once again sounded relatively hawkish at this afternoon’s press conference, and we remain comfortable with our view that monetary policy will be tightened later this year to take some of the steam out of the recent consumer boom. In contrast, the Czech MPC was a little more dovish than we had anticipated today. With the economy holding up well, we don’t expect additional monetary easing, but policy will remain extremely loose for the foreseeable future.